Workforce Planning: Leveraging Today for Tomorrow Quality of Hire Metrics

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Workforce PlanningLeveraging Today for
TomorrowQuality of Hire Metrics
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What is Workforce Planning?

• Workforce Planning uses historical recruiting and
  retention data to forecast talent needs to
  execute business strategy
• Workforce Planning looks at an organization as a
  whole to gain insight into each aspect of
  recruiting, succession planning and employee
  engagement
• Workforce Planning reveals an organizations deep
  challenges and creates an actionable plan to meet
  future needs.

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Preparation

• Make your processes consistent
• Make your processes transparent
• Gather Data
• Find out what the business wants in the next 1,
  3, 7 years
• Be prepared to address what you find

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Necessary Data

• Quality of Hire
• Time To Fill
• Time To Leave
• Census Data
• Training Success Metrics
• Exit Scenarios

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Forecasting Worksheet

• Refinery Welder
• Positions 114
• Planned Expansion 22
• TTH 47 days
• Incumbents 109
• Avg. Tenure 10.2 years
• Immediate Candidates 12
• Expected Turnover 11
• Needed 36
• Most hired in a year 21
• Operational Deficit -15
• Projected Duration to Meet Expansion 1 year, 9
  months

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Quality of Hire

• Not just a survey or single performance
  appraisal.
• Criteria for quality of hire
• Objective
• Repeatable
• Fresh
• Multi-informed
• Sample Inputs
• Formal Performance Review
• 360 or Peer Review
• Other Hires for Same Job/Job Family
• Other Hires From Same Source
• Completion Against New Hire Curriculum
• Use your HiPos to determine your formula at first.

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Sample Inputs

• Formal Performance Reviews
• Usually conducted at 30, 90 and 365 days
• Manager has different view of success
• Employee usually has very little impact on score
• 360 or Peer Reviews
• Often only conducted in first 30 60 days
• Including customers gives better insight
• Effectiveness on the ground can be a reverse
  indicator
• Other hires in the same Job/Job Family
• Good benchmark for like competency
• Measure against contemporaneous hires
• Other hires from same referral source
• Past indicators can spell future performance
• Lower weighted, especially if a common source
• Completion Against Curriculum
• Often one of the best indicators of hire quality
• Depending on the organization, can be inverse
  indicator

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Example Formula

• ((AVERAGE(P)
• (AVERAGE(PR)120)
• AVERAGE(J)
• (AVERAGE(SS)80))/4)CC
• P Formal Performance Review
• PR Peer Review
• J Others In Job Family
• SS Same Source
• CC Curriculum Completion

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Jill Ann

• Jill
• 2 Formal Reviews 4 Average
• 2 360s 3.75 Average
• Curriculum Completion 50
• Ann
• 2 Formal Reviews 2 Average
• 2 360s 3 Average
• Curriculum Completion 100

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Comparisons
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Connected Data

• Quality of Hire is a modifier that shows
  likelihood of current failures or successes.
• Time to Fill indicates ability to execute
  tactical solutions in recruiting and succession
  planning.
• Time to Leave indicates compounded time window to
  make changes.
• Together these make up your expected turnover.

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Summary

• Gather data first
• Use HiPos as models
• Think beyond traditional metrics
• Give yourself time to observe
• Make small changes, observe result

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Next Time Moving the Needle

• Using census data to target recruiting
• Using training and development metrics to enhance
  workforce planning initiatives
• Finding better successors using collaborative
  succession planning
• Thursday, June 19, 2008

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• Q A
• Greg Strange
• VP, Product Management
• gstrange_at_hrsmart.com
• Twitter hrsmarty